SUGGESTED DEFAULT TEMPLATES FOR TWO

Pre-Release

August 20, 2011

Summary. This document describes the procedures to create State and Site Templates (tax form defaults) and provides a set of defaults that can be used with TaxWise Online for 2011. It consists of the following four sections:

·  Introduction

·  Creating State Level Templates

·  Creating Site Level Templates

·  Sending and Using the State Master Template

NOTE: The preliminary TY 2011 version of TWO will not be released until late November or early December of 2011. Consequently, this document is also preliminary and may change when the TY 2011 version of TWO is released. At that time, this document will be updated and re-released to the Tax-Aide Extranet as a final document. Users of this document should check the Extranet in late November/early December for the final version.

Introduction.

TaxWise Online uses the name “Templates” in place of the TaxWise desktop “Tax Form Defaults” for forms default entries. This document contains many suggestions as a starting point for TWO template setup; local practices should prevail. There are actually very few “have to” settings as TWO comes with a good Master Template of form defaults. However, the TWO Master Template does not contain any state defaults, so, at a minimum, if your state has an income tax, you will probably want to modify the TWO Master Template for your use.

For ease of identification of templates, we will refer to the template that came with TWO as the TWO Master Template and the template you create as the State Master Template, even though it may be a District, County, etc. template. Most of the forms we typically use are included in the TWO Master Template. However, some additional forms and default settings on existing tree forms may be desired. TWO templates can also be shared within a state or other defined area(s). To do this you need to identify the site that will create the State Master Template (Template Manager) and the sites that will receive the Master Template (Template Subscriber) on the TaxWise software order submitted to your IRS SPEC office. Then, the Template Manager can send the State Master Template to the Template Subscriber sites.

The return templates for your EFIN may be set up or changed by any user that has been assigned a role that allows this. You may want to restrict this role to the Administrator and LC or ERO, only. You may start creating your own Master Template from scratch or start with the Master Template that is included with TaxWise Online.

Start by logging in as the Admin user select the Return Templates icon from the Toolbar. Other users with priviliges to change Templates can make most of the Template revisons but may not be able make all of them.

The template creation process described in this document assumes you use the TWO Master Template as the starting point for creation of your State Master Template. Select the New icon, enter a template name, check the Make Default button, and select the name of the existing TWO Master Template from the drop down arrow – for later use, you can use any existing template as the starting point for your new template. Click on the Edit icon to make changes in the template.

The resulting forms tree will be identical to the TWO Master Template at this point. Click a form in the tree to edit it. When finished, move to the next form. Data is saved on the CCH servers as you go from form to form. The following conventions will be used:

·  MakeRed means to press the Ctrl-spacebar or F3 while in a field. It will insert a red double-underline for that entry, making it a required field in the selected form.

·  UndoRed means to press the Ctrl-spacebar to delete a red double-underline. To UndoRed on fields that were set by TaxWise you will need to be logged on as Admin, as users with Admin privileges can not do it.

·  Link means to press F9 or click in a field which will then show a small arrowhead icon at the right-hand side of the field. Clicking on that icon opens a new window. With either method, select NEW and select the form you wish from the list that appears. Selecting this new form will place it in the Forms Tree and allow you to modify it.

You can add a new form by clicking the Add icon at the top of the Forms Tree or clicking Forms List on the Toolbar. Forms can be deleted by highlighting the form with your cursor, then clicking the small “x” at the right portion of the form.

Pressing F11 will provide a full screen view of the TWO window by removing Internet Explorer toolbars. The toolbars can be displayed by moving the mouse cursor to the top of the screen. Selecting F11 a second time will return the Internet Explorer toolbars.

Creating State Level Templates

The following paragraphs assume you are creating a State Master Template for export to other sites. Thus, fields like SIDN, EFIN, etc., are left blank. If you are just creating your own site template, you will want to fill in these fields.

Main Information Sheet

·  Mailing Address and Telephone Numbers

Use Ctrl-spacebar to MakeRed Present home address, Zip code, and Daytime Telephone number.

·  State Information

Check “No State” or enter your state two-letter abbreviation, as applicable.

·  Self-Select and Practitioner PIN(s)

Leave the Practitioner’s PIN field empty and red or enter the PIN if it will be the same for all sites getting the State Template.

MakeRed the “Date” field on the line with the Taxpayer’s PIN.

Put an “X” in the “I authorize” box for the Taxpayer.

Put an “X” in the “I authorize” box for the Spouse.

Enter a standard PIN value for the taxpayer or leave blank

Enter a standard PIN value for the spouse or leave blank

·  Preparer Information

Leave the PTIN field empty and red.

Non-paid preparer indicator: Leave this field blank.

·  This completes the Main Information Sheet. Select the next form.

Preparer’s Use Fields Worksheet

[TWO for TY2011 will move the Preparer’s Use Fields from the Main Info Sheet to a new Preparer’s Use Form (name is uncertain at this point). Thus, this section is preliminary and will change once TWO 2011 is released]

These fields are used for various purposes. Reports can be prepared using the information in these fields. The following are suggested uses for the Preparer’s Use Fields:

·  Preparer’s Use Fields 11 and 12 contain two new questions regarding a language other than English spoken in the home and a person in the household with disabilities. These questions are now on the Intake form and it is recommended that they be answered in TaxWise. These answers assist AARP Tax Aide in justifying and obtaining grants for fund the program.

·  Preparer’s Use Fields 13 and 14 are to be used to enter the preparer and QR initials. Use of field 14 for the QR initials is mandatory.

Field 13 – MakeRed

Field 14 – MakeRed

NOTE: Fields 13, 14, and 15 are will not carry forward next year like the other fields.

If you have more preparer fields that you want to track, repeat the above. All fields are 15 digit alpha-numerical.

·  Last lines on form: (Optional) Any text may be entered on the last lines of the form. It is suggested that you type the following on these lines:

8879 Declaration for Electronic Filing

·  No changes need to be made on this form at this point.

Social Security.

·  Select “1040 Wkt1” -1040 Social Security Other Income Worksheet.

·  In the “Taxpayer” column MakeRed the field for “Medicare to Schedule A”

·  In the “Taxpayer” column, MakeRed the field for “Federal tax withheld.”

·  Select the next form or worksheet.

Schedule A (& Sales Tax Worksheets)

·  Select Schedule A, Page 2.

o  UndoRed on Line 1. (The Sales Tax Worksheet is used to enter the values on lines 1, 2, and 3.)

·  Select The Sales Tax Worksheet

o  MakeRed “Sales tax paid on motor vehicles….”, line 8b

·  Select the next form or schedule.

Schedule C

·  Open Schedule C Pg1.

·  On line F, check the box for “Cash Method.”

·  On line G, check the box “YES” for “Did you materially participate in the business.”

·  Click in “Gross Receipts” (line 1).

·  Link to a “NEW Miscellaneous Income from 1099 MISC.”

o  Open the “1099 MISC” to add this form to the tree

o  UndoRed in Box 1, Rent.

o  MakeRed Box 7, Nonemployee compensation.

·  Open Schedule C Pg2.

·  Check the box on line 44 to calculate business miles at the standard mileage rate AND to carry the calculated value to Schedule C Page 1 line 9.

·  Select the next form or worksheet.

Schedule D

·  [This form is being re-done for TY 2011, as well as the process for entering capital assets. Thus, check back in the November/December for these procedures]

Schedule EIC

·  Click on the “Add” button at the top of the Forms Tree

·  Select “Schedule EIC” to add this form to the tree.

·  UndoRed from the first child’s name on line 1.

·  UndoRed from the six boxes on line 6.

·  Select the next form or worksheet.

W-2 Wages

·  UndoRed Name Code (if possible)

·  MakeRed Employer Name, address and zip.

·  Select the next form or schedule.

982 Reduction of Tax Attributes Due to Discharge of Indebtedness

·  Click on the “Add” button at the top of the Forms Tree

·  Select “982” to add this form to the tree.

·  Use F3 to turn line 2 red.

·  Press F10 to close 982.

·  Click “Close Form” to exit from Edit Tax Form Defaults.

·  Re-enter Edit Tax Form Defaults.

·  Select Form 982.

·  Use F3 to turn off the red on line 2.

·  Select the next form or schedule.

1099G Wkt – Unemployment Benefits Received Worksheet

·  Click on the “Add” button at the top of the Forms Tree.

·  Select “1099G” to add this form to the tree.

·  Enter the EIN and name of your state’s payer of unemployment compensation.

·  Enter your state code on line 6.

·  MakeRed lines 2 and 5, also MakeRed line 6, if your state has withholding.

·  If applicable, create additional Form 1099G worksheets for additional states that may pay unemployment benefits to taxpayers who visit AARP Tax-Aide sites in your state.

·  Select the next form or schedule.

1099-R

·  UndoRed Name Code.

·  MakeRed Employer Name, address and zip.

·  Select the next form or schedule.

1116 Foreign Tax Credit.

·  Click on the “Add” button at the top of the Forms Tree

·  Select “Form 1116 Pg1” to add this form to the tree.

·  Select the next form or schedule.

F/S Tax Pd Federal/State Taxes Paid

·  Add the “F/S Tax Pd” to the forms tree. To do this go to form 1040 Page 2 and link to the form from line 62.

·  Select the next form or worksheet

Code Section 7216 Compliance Forms:

·  Click on the “Gen Use” form that is on the forms tree. Remove this form by clicking on the small “x” that will be visible just to the right of the form name and select OK to remove the form.

·  Select and remove the “Gen Disclosure” form in a similar manner.

·  Select the next form or worksheet.

Form 8867 – Paid Preparer EIC Checklist

§  Click on the “Form 8867” that is on the forms tree. Remove this form by clicking on the small “x” that will be visible just to the right of the form name and select OK to remove the form.

Click the “Close” icon when finished.

At this point, we have configured the TWO Templates to the National-level settings suggested by the NTC. Proceed to Part 2 in order to enter state and/or site-specific information.

Creating Site Level Templates

The Part I Instruction suggested a list of defaults that were applicable to TWO EFINs nationwide. This Part II instruction identifies the additional Site-Specific fields that need to be filled in to complete the new Site Template. These defaults cannot be pre-set since the information and numbers are unique for each site.

You will need to be logged in as the admin user, and will go through the same steps as before to bring up your new Template.

First click the Edit button next to your return template prepared with the NTC suggested settings (or your own created template).

TaxWise Online automatically displays the Main Information Sheet. The yellow color of the form borders itself indicates that you are in Return Templates.

Main Information Sheet

·  Telephone Numbers: If you prepare state returns and your state program picks up the Evening Telephone Number instead of the Daytime Number, MakeRed the Evening Telephone Number for the Taxpayer.